Over 180 former Poundworld employees are calling for compensation following the retailers collapse, alleging that it failed to consult with them before making mass redundancies.
The group, represented by employment rights solicitors Morrish, have lodged the claims to Leeds Employment Tribunal, and they are expected to be heard early next year.
Poundworld officially entered administration in June leaving over 5000 former staff facing redundancy.
According to the claimants, the collapsed retailer failed in its statutory duty to consult with them before announcing redundancies, breaking UK employment law which states an employer must consult with representatives within 90 days if it proposes to make 20 or more staff redundant.
They are subsequently calling for protective award compensation, which could see them receive up to 90 days gross pay, which the Government Insolvency Service will guarantee as Poundworld is insolvent.
“Poundworld should have started its information and consultation processes at least 45 days before it made mass redundancies on 18 June,” Morrish solicitor Daniel Kindell said.
“The legal duty to inform and consult exists to ensure that companies try to agree with representatives of its workforce ways of avoiding redundancies, reducing the numbers and mitigating the consequences.
“People’s livelihoods are at stake, so it is essential that these discussions take place in good time before any redundancies are made. Unfortunately in this case, staff were unaware that their jobs were at risk until just days before redundancies were announced.”